This article is available in Spanish.
Even with recent market corrections and geopolitical tensions, Dogecoin (DOGE) continues to see an uptick in activity from both whales and retail investors. Data through Santiment shows that whale transactions have reached new highs since June.
Before the September 28 price spike, these large investors had controlled approximately 1,203 trades worth more than $10 million. Such activity suggests that despite the macro markets negativitykey stakeholders within the Dogecoin ecosystem are optimistic.
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A clear increase in the number of active addresses on the Dogecoin network is another important indication supporting this positivism. About 63,689 DOGE addresses have changed tokens in the past three days; this is the largest figure since six months ago.
🐶 Dogecoin returned -18% from its peak on Saturday. But the on-chain activity indicates that whales may not be done with all the bullish momentum from crypto’s top meme coin. Although they made a profit just before the peak, their activity on the DOGE network remains very high. pic.twitter.com/FsmWJGkSE6
— Santiment (@santimentfeed) October 2, 2024
This level of activity is comparable to what occurred in the early days of April. Ali Martinez, an expert, further confirmed the boom, saying that active addresses have risen to a strong influx of 84,306 consumers into the meme coin. Such interest bodes well for Dogecoin’s future, especially when it comes to the latest batch of wallet addresses being created.
Increasing acceptance fuels possible rally
This increase in activity in the chain is not a small blip on the radar. Martinez has found a promising indicator on Dogecoin’s weekly chart; there will most likely be a price rally. He drew attention to a bullish MACD crossover that will likely lead to a 180% increase in DOGE’s price.
On both previous occasions where this metric moved back into bull territory, Dogecoin delivered an astronomical 85% gain in October 2023 and a whopping 175% gain in February 2024. If history is any guide, this could mean that there are good things are coming. horizon for Dogecoin.
DOGE market cap currently at $14.8 billion. Chart: TradingView.com
It is worth noting that the overall market sentiment for Dogecoin is bearish, based on the latest price predictions from CoinCodex. Based on their analysis, DOGE could fall 13% and reach around $0.091695 by November 2, 2024.
A score of 37 on the Fear & Greed Index still places traders’ sentiment on the worrying side. Dogecoin has been able to experience 16 green days in the last 30 days, accounting for only 53% of the time, with an average price volatility of 8.15%. This volatility indicates Dogecoin’s sensitivity to market fluctuations.
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Navigating market uncertainty
Given the mixed signals, traders and investors are advised to exercise caution. While the increase in whale activity and retail interaction points to underlying demand for Dogecoin, one cannot overlook the negative sentiment and potential price decline.
The current market volatility can be risky for new investors looking to get involved now. Whether Dogecoin can stabilize or continue a downward trend in the coming weeks will depend mainly on a concentration at key support levels.
Featured image from Vecteezy, chart from TradingView